Detachment vs Conviction in Investing | Durable Value Ep 83

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In this episode of Durable Value, we dive deep into one of the greatest paradoxes in investing: the tension between detachment and conviction. How do you balance making data-driven, unemotional decisions with the need to act decisively and believe in your thesis? Join us as we explore real-world examples, investment committee dynamics, and the strategies that set world-class investors apart.

Timestamps:

00:00 – Introduction: The Paradox of Detachment vs. Conviction

00:24 – Defining Detachment and Conviction in Investing

00:47 – Risk, Conservatism, and the Two Schools of Thought

01:42 – The Power of Conviction and Attribute Scoring

03:13 – Data-Driven Decision Making vs. Gut Instinct

05:14 – Investment Committee: Balancing Conviction and Detachment

07:17 – The Reverse Funnel: Creating Opportunities

08:07 – Avoiding Auctions and Broker Funnels

09:14 – Building a Network for Inbound Deals

12:06 – The Ferris Wheel: Managing Multiple Offers

13:52 – Discomfort and Optionality in Deal-Making

15:32 – The Key to Success: Detachment Creates Conviction

16:53 – Acting Decisively and the Value of Detachment